BMC Industries and Younger Optics Announce License Agreement; Agreement Resolves Patent Infringement Lawsuit Against Younger

Business Wire, March 18, 2003

Business Editors/Health/Medical Writers

MINNEAPOLIS & TORRANCE, Calif.--(BUSINESS WIRE)--March 18, 2003

BMC Industries, Inc. (NYSE:BMM), through its Vision-Ease Lens, Inc. subsidiary ("Vision-Ease"), and Younger Mfg. Co., operating under the name Younger Optics ("Younger"), today announced the signing of a license agreement under which Vision-Ease has granted to Younger a license to its polycarbonate polarizing patent portfolio. This agreement resolves a patent infringement lawsuit between Vision-Ease and Younger filed last year. The specific terms of the settlement and the license agreement are confidential.

"We are pleased to reach this agreement with Younger," said Douglas C. Hepper, chairman and chief executive officer of BMC Industries. "Younger shares our respect for patents as the backbone of innovation and we appreciate their willingness to negotiate an equitable agreement without further litigation."

"BMC's Vision-Ease group has invested significantly in polarizing technology and currently is enjoying license revenue on our patent portfolio from agreements with others within the industry," Hepper said. "We've identified a number of additional product applications for this technology, and hope to facilitate the growth of these opportunities through internal development and production, as well as through licensing of our patent portfolio."

As part of the license agreement, Vision-Ease received a license to Younger's patent portfolio covering the use of PET polarizing film in optical-quality parts.

"The eyewear industry has grown through a long history of innovation," said Derek Harris, Ph.D., Vision-Ease's vice president of research and development. "Vision-Ease is a pioneer in the use of polycarbonate to produce ophthalmic lenses, and we intend to continue to be a leader in this exciting technology."

"What is so exciting about this agreement is that it removes the barriers to growth of polycarbonate polarizing lenses in the marketplace caused by litigation. Resolution of this dispute also allows Vision-Ease and Younger to focus again on product innovations and efforts to increase awareness of the benefits of polycarbonate polarizing lenses," said David Rips, president and chief executive officer of Younger Optics. "I really look forward to growing this market through great innovations, high quality products, service excellence and education of industry professionals and consumers."

About BMC Industries

BMC Industries, founded in 1907, comprises two business segments: Buckbee-Mears and Optical Products. The Buckbee-Mears group offers a range of services and manufacturing capabilities to meet the most demanding precision metal manufacturing needs. The group is a leading producer of a variety of precision photo-etched and electroformed components that require fine features and tight tolerances. The group is also the only North American manufacturer of aperture masks, a key component in color television picture tubes.

The Optical Products group, operating under the Vision-Ease Lens trade name, is a leading designer, manufacturer and distributor of polycarbonate, glass and plastic eyewear lenses. Vision-Ease is a technology and a market share leader in the polycarbonate lens segment of the market. Polycarbonate lenses are thinner and lighter than lenses made of other materials, while providing inherent ultraviolet (UV) filtering and impact resistant characteristics.

BMC Industries, Inc. is traded on the New York Stock Exchange under the ticker symbol "BMM". For more information about BMC Industries, Inc., visit the Company's Web site at www.bmcind.com.

About Younger Optics

With world headquarters in Torrance, Calif., Younger Optics has been devoted to bringing innovative products to the optical industry for nearly 50 years. Younger markets its line of polarizing products under the NuPolar(R) brand, and sells a full line of progressives under its Image(R) brand. At the most recent Optical Laboratories Meeting in Indianapolis, Younger won an unprecedented three OLA Awards of Excellence. To find out more information about Younger and NuPolar(R), visit the company's Web site at www.YoungerOptics.com

Safe Harbor for Forward-Looking Statements

This news release contains various "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are intended to be covered by the safe harbors created thereby. Statements made in this news release that are not statements of historical facts, including statements regarding future performance, are Forward-Looking Statements. Forward-Looking Statements may be identified by the use of words such as "anticipates", "estimates", "expects", "forecasts", "projects", "intends", "plans", "predicts", and similar expressions. Forward-Looking Statements are subject to a number of risks and uncertainties that could cause, and in certain instances have caused, actual results or outcomes to differ materially from those projected, including, among others, costs associated with the development and protection of intellectual property; ability to manage working capital and align costs with market conditions; ability to maintain consistently high customer service levels and product fill rates at Vision-Ease; ability to increase sales of products at Vision-Ease; eventual outcome of outstanding litigation; further aperture mask price declines; slowdown in growth of, or price reductions in, high-end lens products; fluctuations in currency exchange rates; rising raw material costs; ability to improve operating and manufacturing efficiencies through consolidation of facilities; ongoing economic uncertainty and the affect of war or other conflict on operations; the ability to generate sufficient cash flow to meet debt service obligations; the ability to meet future financial covenants related to, and the ability to negotiate financing arrangements in addition to, or in replacement of, existing senior credit facilities. These and other risks and uncertainties are discussed in further detail in BMC's Annual Report and Form 10-K for the year ended December 31, 2001 and other documents filed with the Securities and Exchange Commission.